Trade of the Day: CAD/JPY

By: Dima Chernovolov

CAD/JPY continues to rise inside the 30-minute Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Up Channel at the 6-bar level – which is the result of the medium Initial Trend (5 bars), higher Clarity (6 bars) and substantial Uniformity (9 bars both). CAD/JPY is expected to rise further inside this Up Channel – in line with the earlier breakout of the daily Down Channel shown below.

As can be seen from the daily CAD/JPY chart below – the price earlier broke the daily Down Channel from the start of April  – which accelerated the active upward impulse from the key support level 86.10 (former strong support from March). The strength of the active upward impulse increases the probability CAD/JPY will continue to rise inside this 30-minute Up Channel chart pattern.